LIVINGSTONE Shire Council is set to be dragged before the Rockhampton District court after being sued by one of its former directors.

LSC's former Corporate Services director Ron Posselt is suing the council for lost income due to an alleged breach of contract of employment and financial damages stemming from what he claims was misleading conduct relating to his employment.

Documents filed with the court seek $546,243 in financial damages for loss of income and other costs.

Mr Posselt entered into a four-year fixed contract with the council in July 2016 with a total income of $240,000 per year which saw him relocate his family from Harrington, New South Wales to Yeppoon.

In October 2017, Mr Posselt claimed he received a letter of termination from the Livingstone Shire CEO Christina Murdoch citing a particular clause in his contract.

In his court documentation challenging this decision, Mr Posselt pointed to another clause in his contract which he said demonstrated that LSC were attempting to dismiss him using an invalid clause that was inappropriate for ending Mr Posselt's fixed-term contract.

He further alleged misleading conduct by Ms Murdoch by representing the position would be of a high responsibility fixed four-year term which was why he entered into the contract.

Livingstone Shire Council was yet to file a defence and a spokesperson declined to comment as "court proceedings have been commenced”.